Chiquita to close two processing facilities
Dec 8, 2005 9:03 AM, from staff and wire reports
Chiquita Brands International Inc will close processing facilities in Manteno IL and Kansas City MO by February 2006 as part of a supply chain optimization plan. The plan is expected to eliminate redundancies in fresh-cut fruit processing capacity in the Midwest, improve plant use, and cut costs.
This consolidation effort is one component of Chiquita’s integration plan, which aims to achieve $20 million in annual cost synergies within three years after the acquisition of Fresh Express. The company expects this consolidation to deliver about $3 million in annual cost savings, which will begin to be realized in the second quarter of 2006.
The roughly 100 employees at the company’s Kansas City and Manteno facilities will be eligible to apply for open positions at other Chiquita operations.
